RIYADH, (Saudi Arabia), January 5, 2002 - Saudi Basic Industries Corporation (“SABIC”) announced the signing of underwriting letters by a club of banks in relation to a US$1,154 million loan facility for its 100% owned subsidiary Jubail United Petrochemical Company. The loan facility will be used by Jubail United Petrochemical Company to construct a petrochemical complex in Jubail Industrial City in Saudi Arabia.
Gulf International Bank B.S.C. acted as SABIC’s and Jubail United Petrochemical Company’s independent financial advisor while the Law Firm of Yousef & Mohammed Al Jadaan in co-operation with Clifford Chance acted as legal advisor.

Mr. Mohammed H. Al-Mady, the Vice Chairman, and Managing Director of SABIC said that he was pleased with the level of interest the loan facility had generated in the local, regional and international lending markets and that he appreciated the role played by the club of banks . He also lauded the effort put in by the banks in successfully meeting a very tight timetable, which allowed the deal to be mandated in just 28 days from the date of launch despite difficult market conditions.

Jubail United Petrochemical Company is the latest SABIC industrial affiliate, planning to come on stream in the second half of 2004 , with annual production capacity of one millions mt of ethylene, (460,000) mt of glycol ethylene , (150,000) mt of linear alpha olefins (LAO), and (400,000) thousand mt of polyethylene.

Mohammed S. Motawa
Vice President for Public Relations